What is the present worth and the future worth

Assignment Help Business Economics
Reference no: EM131094610

An asset has a first cost of $200,000, annual O&M costs of $5,000, a salvage value of $50,000 at the end of 10 years, and at the end of 5 years will need a major overhaul costing $20,000. At an interest rate of 4%, what is the present worth and the future worth? Please show all work, NOT EXCEL, and include CFD.

Reference no: EM131094610

Questions Cloud

What has the federal government and the federal reserve : With respect to recent Federal Government Fiscal Stimulus packages and Federal Reserve policies to control liquidity and counter the credit crisis, what has the Federal Government and the Federal Reserve been doing?
What are total benefits associated with the golf course : A small city in Indiana has two residents, who are lucky enough to have a municipal golf course in their city. The marginal benefit of playing a round of golf for the first resident is given by MB1=70-5Q1, and the marginal benefit of playing golf for..
Opinions as noted in the critical legal thinking-ethics : Critical Legal Thinking Instructions: Read United States v. Bhagat – Cheeseman text page 365. Respond to the three Case Questions found in Cheeseman Text page 365 Brief the facts of the case and assume your boss is seeking your opinions as noted in t..
The equilibrium price and quantity of chips sold in market : Chips and salsa are often consumed together. Suppose you go to the store and find that the price of salsa has increased. a. Using supply and demand curves, demonstrate the likely effect of this increase in the price of salsa on the equilibrium price ..
What is the present worth and the future worth : An asset has a first cost of $200,000, annual O&M costs of $5,000, a salvage value of $50,000 at the end of 10 years, and at the end of 5 years will need a major overhaul costing $20,000. At an interest rate of 4%, what is the present worth and the f..
Experiencing high government deficits and debts : The US and many other countries are experiencing high government deficits and debts. What, if any, impact does this have on their respective economies? Is government debt bad? Good? It depends? And if so, why and how?
Calculate impact of increase in desired currency holdings : Calculate the impact of an increase in desired currency holdings (currency drain) on the money supply from 10% to 15% when the reserve ratio is 10 percent of deposits, and central bank’s balance sheet is presented below in billion dollars:
Experiencing high government deficits and debts : The US and many other countries are experiencing high government deficits and debts. What, if any, impact does this have on their does this have on their respective economies? Is government debt bad? Good? It depends? And if so, why and how?
How many people were employed : Suppose that some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were employed?

Reviews

Write a Review

Business Economics Questions & Answers

  Determine cost to government of buying firms unsold units

Consider a market where supply and demand are given by QXS = -16 + PX and QXd = 92 - 2PX. Suppose the government imposes a price floor of $40, and agrees to purchase any and all units consumers do not buy at the floor price of $40 per unit. Determine..

  What are the pros and cons of trade restrictions

What are the pros and cons of trade restrictions? What are the pros and cons of free trade? Which is better in your opinion?

  What price do you think this firm should charge

Illustrate what price do you think this firm should charge if it wants to maximize its short-run profit.

  Oil depletion assuming renewable substitute exists

Graphically, show the time path of prices, MC, and resource consumption for oil depletion assuming a renewable substitute exists and MEC increases as extraction increases. How has the advent of fracking changed this model, if at all? Explain. Why is ..

  An economy starts off with a per capita gdp

An economy starts off with a per capita GDP of $5000. How large will the per capita GDP be if it grows at an annual rate of 2% for 20 years? 2% for 40 years? 4% for 40 years? 6% for 40 years?

  Manufacturing motorcycle engine budgeted

Eastern Hydra system which is manufacturing motorcycle engine budgeted 75,000 per year to pay for certain parts over the next 5 years. If the company expects to spend 15,000 in year 1, how much of uniform increase each year is the company expecting i..

  What is the resulting outcome of the game

what is the resulting outcome of the game? (b) Suppose now that dierent players obtain dierent shares (adding up to 1) when the majority vote is not passed. What happens in a SPNE then?

  U.s. government decides to levy a tax

Suppose that the U.S. government decides to levy a tax (such as an excise tax) on cola consumers. Before the tax, 20,000 cases of cola were sold every week at a price of $8 per case. after the teax,

  Discuss the pros and cons of this disruptive business model

The Sharing Economy 1) Discuss the pros and cons of this disruptive business model. Is it good for job creation? Use a specific example(s) to support your answer. 2) Identify a market segment where you feel "collaborative consumption" is likely to be..

  What property tax rate will necessary to fund public service

Suppose that there are 150 houses in the community with 2,000 square feet (providing services that rent for $10,000 per year). The interest rate is 4% and with proper maintenance all of the houses will last forever. In an election the population deci..

  Forecast impact of this higher inflation on value of dollar

Some observers believe that large U.S. government deficits will lead to higher inflation in the future. If this did happen, how could the PPP theory be used to forecast the impact of this higher inflation on the value of the dollar?

  What form of business ownership should you choose

Let us assume you and ten of your friends are going to open and invest in a business. You do not want to pay double taxation on the profits. You want a type of ownership where profits must be distributed based on how much each person has invested ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd